Question
1. What is the future value of $35 a week for 40 years at 8.5 percent interest? Assume the first payment occurs at the end
1. What is the future value of $35 a week for 40 years at 8.5 percent interest? Assume the first payment occurs at the end of this week and there are 52 weeks in a year. A) $638,855.00 B) $675,983.00 C) $629,789.00 D) $642,873.00 E) $618,394.00
2. Amanda plans to invest $2,500 a year for 30 years starting at the end of this year. How much will this investment be worth at the end of the 30 years if she earns an average annual rate of return of 6.9 percent? A) $230,743.00 B) $233,962.00 C) $231,945.00 D) $233,910.00 E) $222,705.00
3. Uphill Insurance offers an annuity due with semiannual payments for 50 years at 3 percent interest. The annuity costs $200,000 today. What is the amount of each annuity payment? A) $3,388.00 B) $3,497.00 C) $3,874.00 D) $3,850.00 E) $3,199.00
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